1 Steve Heminger Executive Director, MTC May 2009

2 In Memoriam Paul M. Weyrich

3 Statutory Mandate Study current condition and future needs of surface transportation system Evaluate short-term sources for Highway Trust Fund revenues and long-term alternatives to replace or supplement fuel tax Frame policy and funding recommendations for 15-, 30-, and 50-year time horizons

4 Rebuilding America

5 Minnesota I-35 W

Report Card for America’s Infrastructure Aviation D Bridges C Dams D Drinking Water D- Energy D+ Hazardous Waste D Levees D- Navigable Waterways D- Public Parks and Recreation C- Rail C- Roads D- Schools D Solid Waste C+ Transit D Wastewater D- America’s Infrastructure GPA D Sources: American Society of Civil Engineers, 2009

7 Freight

8 China was 33% of US imports in 2000 and will be 50% by

9 1,437 6,165 (TEUs in thousands) Houston 13,101 LA/LB 1,010 2,152 Miami 2,043 3,382 Oakland 4,478 15,835 NY/NJ 1,809 5,566 Virginia 1,860 6,639 Charleston 1,662 9,420 Savannah 1,798 4,396 Tacoma 1,776 2,557 Seattle 59,420 Forecast figures based on 10-year linear regression Dramatic Increase in U.S. Maritime Trade Volume of trade: 2004 and 2020 Source: U.S. DOT

10 Metro Mobility

11 In Congestion for At Least 40 Hours Annually Source: Texas Transportation Institute

12 Metros Capture Huge Market Share Metro Areas >1 Million 1Share of U.S. Population 58% 2Share of GDP 61% 3Share of Traffic Congestion 97% 4Share of Transit Ridership 92% 5Share of Population Exposure to Criteria Pollutants 88% Sources: U.S. Census, Texas Transportation Institute, U.S. Conference of Mayors, EPA

13 Energy Security/ Climate Change

Annual Petroleum Production, Imports and Consumption In the U.S., 1949–2006 Source: Energy Information Administration 14

15 U.S. Carbon Dioxide Emissions from Energy Use: Source: Bureau of Transportation Statistics, 2007

16 Safety

17 Fatalities and Fatality Rate per 100M VMT by Year Source: National Highway Traffic Safety Administration, 2008

18 U.S. Traffic Deaths Far Exceed Casualties of War Source: Leonard Evans, Traffic Safety, 2004

19 Finance

20 Projected Highway and Transit Account Balances Through 2012 Source: U.S. Department of the Treasury projections

21 Annual National Funding Gap Current Spending (2006) Cost to Maintain (2055) Cost to Improve with Pricing (2055) Source: Section 1909 Commission Cost to Improve without Pricing (2055)

22 Major Recommendations: The 3 R’s

23 1. Reform

24 The federal surface transportation program should not be reauthorized in its current form. Instead, we should make a new beginning.

25 The federal program should be performance-driven, outcome-based, generally mode-neutral, and refocused to pursue objectives of genuine national interest.

26 2. Restructuring

The 108 separate highway, transit, railroad, and safety funding categories in federal law should be consolidated into the following 10 new federal programs: 27

28 The various modal administrations of the U.S. Department of Transportation should be reorganized into functional units. U.K. Model FormerNew RoadCity/Regional Networks RailNational Networks Air International Networks Sea

29 3. Reinvestment

30 To address the investment shortfall by providing the traditional federal share of 40% of total transportation capital funding, the federal fuel tax needs to be raised by 25–40 cents per gallon.

31 The fuel tax continues to be a viable revenue source for surface transportation at least through Thereafter, the most promising alternative revenue measure appears to be a vehicle miles traveled (VMT) fee, provided that substantial privacy and collection cost issues can be addressed. 31

32 “Our unity as a nation is sustained by free communication of thought and by easy transportation of people and goods... Together the unifying forces of our communication and transportation systems are dynamic elements in the very name we bear — United States. Without them, we would be a mere alliance of many separate parts.” — Dwight D. Eisenhower, 1955

For More Information: 33